A blog on Chinese economy & society

Inflation surges in China

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China’s February CPI came out at higher than expected 2.7% YOY, or 1.2% MOM. While the headline number may not sound too bad as the PBOC, the Chinese central bank,  has recently stated publicly the inflation target is 3%, the breakdown is more worrying. Food prices rose 6.2% YOY, the highest among all categories. Since people with lower income invariably spend larger portion of their budget on food, this is creating serious concern for social stability. As such, I think measures for further monetary tightening are inevitable.


Written by Cindy Luk

March 12, 2010 at 12:00 am

Posted in China, Macro

Tagged with , ,

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